*CBN Cardoso
Whereas the Central Bank of Nigeria CBN, has hiked taxes on ATM withdrawals effective March 1, 2025, it has also barred Banks from compelling customers to withdraw less than N20,000 per transaction despite sufficient funds in their account, saying sanctions awaits such banks.
Ahead of this directive, almost every bank has a policy of compelling none-customers to withdraw less than N20,000 at once. While some kept other customers at only N10,000, others limit so low to even N5,000 and N3,000, but only allow their customers to withdraw N20,000 at once. .
Also in the latest CBN directive, it has further clarified that financial institutions are not permitted to charge more than the prescribed fees, although banks may reduce charges depending on their business strategy.
The CBN stated that the charge on withdrawals below N20,000 is intended to prevent customers from splitting withdrawals into smaller amounts to avoid fees.
The FAQ document read, “Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank (a bank other than the one that issued your payment card).
“The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per withdrawal.
“In other words, ATM transactions will incur a base fee of N100 per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof.”
Customers withdrawing more than N20,000 from another bank’s ATM will be charged an additional N100 for every subsequent N20,000 or portion thereof.
Another significant change in the revised structure is the removal of the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
From March 1, 2025, all withdrawals at another bank’s ATM will attract charges, potentially increasing costs for customers who frequently use ATMs outside their primary bank.
Customers who experience such restrictions are encouraged to report complaints to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
To minimise transaction fees, the CBN has advised customers to prioritise withdrawals from their bank’s own ATMs.
